Both Influential, Independent Advisors Make Powerful Statements that
Change at Arconic is Warranted

Arconic’s Board Fails to Gain a Single Recommendation for Any
of Its Contested Nominees from Either of the Two Most Influential Proxy
Advisory Firms

May 16, 2017 10:38 AM Eastern Daylight Time

NEW YORK--(BUSINESS WIRE)--Elliott Management Corporation (“Elliott”), which manages funds that
collectively beneficially own a 13.2% economic interest in Arconic Inc.
(NYSE: ARNC) (“Arconic” or the “Company”), today released a statement
welcoming the recommendations of both Institutional Shareholder Services
("ISS") and Glass, Lewis & Co. (“Glass Lewis”) that their clients vote
using the BLUE proxy card at
Arconic’s 2017 Annual Meeting this May 25th.

ISS and Glass Lewis, two of the world’s most influential independent
proxy advisory firms, both recommended in favor of voting using
the BLUE proxy card at the upcoming
annual meeting. The reports issued by each firm also contain powerful
statements that additional change is warranted at Arconic.

Importantly, notwithstanding Arconic’s misleading claims to the
contrary, neither ISS nor Glass Lewis recommended a single one of the
contested nominees put forward by Arconic’s Board. Instead, both of
these influential, independent advisors recommended a vote on the BLUE
card for real change at Arconic.

Key Quotes from the ISS Report

“On balance … the evidence produced by [Elliott] appears to overwhelm
the board’s case, which is often based on less convincing assumptions.”

Perhaps nowhere is the board’s selective representation of facts more
apparent than in its repeated assertion that this contest boils down
to an attempt by the dissident, only a 13 percent shareholder, to gain
control of the company. Not only does this portrayal overlook the
board’s own low ownership (as a whole, including Kleinfeld) of less
than 1 percent of the company’s shares, but it also neglects the fact
that several other shareholders have publicly expressed support for
[Elliott’s] case. First Pacific Advisors (FPA, 4.5 percent) and Orbis
(currently 4.3 percent) have both disclosed letters criticizing the
legacy directors and noting that shareholders representing more than
20 percent of the company share in [Elliott’s] frustration; both have
reiterated their concerns after Kleinfeld’s departure. This critical
mass of public shareholder support for [Elliott] is impossible to
ignore, particularly when contrasted with the board’s own negligible
level of stock ownership.”

“[Elliott] has undoubtedly been a catalyst for many of the positive
changes that have taken place over the last year … [Elliott’s]
campaign has also channeled significant frustration with the board by
other shareholders. Based on these aforementioned factors, the
company’s spotty track record on M&A and cost control, and
underwhelming shareholder returns under Kleinfeld – as well as the
board’s reflexive defense of the former CEO and failure to quickly
address what it too casually dismisses as “optics issues” – [Elliott]
has presented a compelling case that some degree of additional
boardroom change is warranted.”

Key Quotes from the Glass Lewis Report

“[W]e believe this contest is about holding incumbent directors
responsible for the Company's value destruction, governance
deficiencies, and unwillingness to embrace value creative change. In
our opinion, Elliott has highlighted a compelling case of
underperformance and governance inadequacies that continue to be
largely overlooked by the board.”

“We agree with Elliott that there are a number of corporate governance
deficiencies at Arconic, including a staggered board and supermajority
voting requirements, the combined role of chairman and CEO (until the
removal of Mr. Kleinfeld in April 2017), as well as a history of
failing to meaningfully address these deficiencies…the incumbent board
does not appear to have a sincere interest in significantly improving
Arconic's corporate governance.”

“[U]pon consideration of the extensive arguments and materials
provided by both parties to shareholders, we find that Elliott, as a
significant and long-term investor in Arconic, has identified a number
of serious concerns at the Company. Arconic’s total shareholder
returns have been generally poor over the long-term, both on an
absolute basis and relative to peers and industry benchmarks. Further,
Arconic’s recent share price improvement appears largely driven by
Elliott’s campaign to remove the incumbent leadership, in our view. As
outlined above, Arconic suffers from poor capital allocation,
including generating low returns on invested capital and repeatedly
missed financial targets, including falling well short of achieving
the financial targets established in connection with the Firth Rixson
acquisition. The Company appears to have lost credibility with
investors, in our view, and the board’s corporate governance track
record is less than inspiring.

We are grateful and appreciative that each of these influential,
independent advisors has decided to weigh in on Arconic’s future and
recommend the BLUE proxy card. Their
recommendations join those of dozens of other influential voices hailing
from the media,
the research
community, and our fellow
Arconic shareholders – all voicing the need for real change at the
Company.

Elliott Associates, L.P. and Elliott International, L.P. (collectively,
“Elliott”), together with the other participants in Elliott’s proxy
solicitation, have filed a definitive proxy statement and accompanying
BLUE proxy card with the Securities and Exchange Commission (“SEC”) to
be used to solicit proxies in connection with the 2017 annual meeting of
shareholders (the “Annual Meeting”) of Arconic Inc. (the “Company”).
Shareholders are advised to read the proxy statement and any other
documents related to the solicitation of shareholders of the Company in
connection with the Annual Meeting because they contain important
information, including information relating to the participants in
Elliott’s proxy solicitation. These materials and other materials filed
by Elliott with the SEC in connection with the solicitation of proxies
are available at no charge on the SEC’s website at http://www.sec.gov.
The definitive proxy statement and other relevant documents filed by
Elliott with the SEC are also available, without charge, by directing a
request to Elliott’s proxy solicitor, Okapi Partners LLC, at its
toll-free number 1-877-869-0171 or via email at info@okapipartners.com.

About Elliott

Elliott Management Corporation manages two multi-strategy hedge funds
which combined have more than $32 billion of assets under management.
Its flagship fund, Elliott Associates, L.P., was founded in 1977, making
it one of the oldest hedge funds under continuous management. The
Elliott funds’ investors include pension plans, sovereign wealth funds,
endowments, foundations, funds-of-funds, high net worth individuals and
families, and employees of the firm.